Abstract

With the emergence of the Global Economic Crisis commercial banks on the Serbian market are faced with
the constant increase of the problem loans. Poor payment discipline is a burning issue of the modern business
which is influencing all societies all over the world. Client’s constant payment delays or even complete
absence of payment are resulting in radical problem connected with bank’s liquidity. This is causing poor
business results and, at the same time,they are not able to settle their own debts on time. It can be concluded
that, all the participants on the market are entering an “enchanted circle” of nonpayment.